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tv   Mad Money  NBC  October 22, 2015 3:00am-4:00am CDT

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>> is it a cold or the flu? how to prevent both. my mission is simple, so make you money. i'm here to level the plague field for all investors. there ialways a bull market somewhere and i promise to help you find it. "mad money" starts now. i'm cramer. welcome to mad money. my job is not just to educate one but to teach you in context. we're getting a pretty clear formula for what's working and what's not. >> sell, sell, sell. >> including on a day like today where the dow sank 4.8 points. it was a stunning reversal. it's fascinate to go watch this formula play out. in other words, it makes sense,
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but only for a few days before the market loses interest and moves on to some in you theme. consider stocks like united technologies, honey well and boeing and ppg been they were loathed. the market hated them so much that the they became incredibly oversold. meaning they kept going down and down and down to the point where it seemed to be sunk. then out of nowhere, a couple of things happened and the big portfolio managers, something changed their view from bear stocks to bullish in the blink of an eye. for starters, general electric had a one-two punch. got the endorsement of nelson pells and the only one of his kind who, if you consistently followed him, you beat the market even if you bought the position after it was announced and after it spiked and he got involved buying a ton of stock. true to form gd stock has been roaring ever since. last friday, ge stellar quarter,
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that was the signal that there's now an appetite for these down and out industrials, which you'll be getting more for months. since then, we've seen honey well, united technologies reports, along with a usually disappointing preannouncement. yet after an initial dip, they all went higher. only ppg proved to be better than expected and that just kept them from flying. today, though, we got excellent numbers from boeing and general motors and that reinforced the group that this group is too important to ignore. my job is to explain what's happening in the stock market. because of worries about world economic weakness, worries to keep interest rates lows, portfolio managers underweighted this group dramatically or sold far more than what they should have against what had been the benchmark in the s&p. they owned 8%. this underweight situation
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money managers are just now warm ug up to the notion that they're improving, the chinese consumer is start to go buy goods again. all these sign ves made the portfolio managers frantic, frantic in their efforts not to miss this bullish reranking to use their term of the industrials. they want in and they now use any weakness not to sell, but to buy these kinds of stocks. at the same time, there is now a palpable sense of hatred surrounding the once beloved drugs and health care stocks. this companies that were always so consistent. i think the money that is coming into the industrials is out of health care. ever since that tone deaf health care manager came on tv and bragged about jacking up prices for some old drugs, this cohort has become too dangerous to own. we're going into an election year for heaven's sake and in an election year, nobody wants to champion pharmaceuticals. so the companies people identify
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prices want you to think valiant and verizon pharma are being trashed almost daily. same goes for big pharma and hospital chains and terrible performance right into tonight. the valiant sell-off today, it took my breath away. compared it to enron and the stock at one point shed about $60 from its $150 opening price before rebound to go close still down an astounding 28 bucks. it was one of the scariest declines i've seen in 35 years of invest inging. as long as the republicans seem to be in disarray, these stocks will become disarray. hillary clinton has become a vocal opponent of higher drug prices. without price increases, this group is done, finished, left for dead. so it's going to be difficult to get any sustained upside here even in the biotechs. until valiant bottoms and bottoms for good and we get a big acquisition in the sector, both have to happen, this group
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may not be able to stabilize. meanwhile, money is flooding out of retail in the oil and gas stocks. i mentioned them in the same breath. it sure doesn't seem is to be playing out that way at the moment. right now, the oil glock continues, bigger inventory build up today is barely being dented the. at the same time, the newly elected prime minister of canada has pretty much killed the keystone pipeline on his end. and as chip johnson told us last night on mad money, many of the oil company's big and small are running out of money and unlikely to get a lot of new money to drill. the saving grace here is m&a, like halliburton's takeover of baker hughes. this has made schlumberger the stock to own. there can be a lid on the group unless crude goes over $50 from its current level, i expect all the mlps to trade down tomorrow
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as a c corp. the restaurant cohort is a disaster because of one conference call from chipotle, which said the costs were going higher, especially labor and real estate and food costs and they're cutting right into the bottom line. the whole group got crushed. the only one that has any momentum is mcdonald's and that's because it's lagged so badly. the problems in chipotle will be fleeting, but you won't get a bottom overnight. it didn't help that only a week ago walmart slashed its earnings estimate in part. it's not spilling over into the rest of retail. believe me, if walmart were planning to give away power and hard goods and foods, there's no way it will be up that much. the tech stocks have been rallied by the bear market. something shareholders have serviced now we'll discover and shareholders discover -- of
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twitter discovered when morgan stanley took twitter to an outright sale this morning. this is a rolling bear market and it strikes with the drop of a hat. high growth naems like tesla have run into a wall and netflix has been dropping. that was a leader. but there's some joy in tech, thanks to recent takeovers that will take over capacity. today is no different. greatly consolidating the semi conductor equipment business. there's an amalgamation going on in disk drives and sflash. a struggling hard drivemaker is combining with a struggling flashmaker and not a moment too soon given that intel is going to be aggressive in the flash. not all of these merchants are working in tech. dell's pure of emc looks stunning because emc's business only 150e78d to have hit a wall. there's trepidation, the abagos, the exp semis.
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however, after the close, old fashioned semi closed expectations were blown away, so who knows. we know the market likes uncontroversial growth. there's traditional growth, think about starbucks and, yes, facebook, they continue to be lobbed. then there's slow growth, think clorox, kellogg, worehormel, not to mention kimberly clark. finally, there's the financials. people want to own the insurance companies, they think traverls is gorgeous. boutique insurance is great, too. what about the big banks? simple, without a rate hike, there's no traction. american express, axp, after one more hideous quarter, many of these moves are breath taking. the sleep at night health care stocks are giving you a sleepless night and everybody else, it's just a rolling bear
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where you might get mauled and you might not, dependsing upon the take. terry in washington, terry. is. >> caller: hi, buck kie bu ya to you, jim. got a couple of questions about white wave versus hanes. white wave just got downgraded from goldman sachs. what is your favorite? >> i like them both. white wave is owned by my charitable trust. white wave got downgraded yesterday. my thesis on white wave is twofold. it could be acquired or it's growing very well. hane is also down. both of them are buys. i do not think the natural organic industry is a craze. i think it's here for a long time, but i respect the fact that jeweldy hon said it should be sold. steve in maryland. >> caller: how are you? >> i'm great, steve. >> caller: thanks for taking my call and thanks for the advise
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you provide. >> i try. >> caller: i.a. smith, water heater manufacturer, seem to be doing good work all the time. had a good report today. a wild ride today, but longer term, it's kind of like to get your opinion, exposure to china and things like that. >> i've not done enough work on it. this is one, as you said, e.l. smith, haven't looked at it lately. don't even know the breakdown of where they sell. i know they make the kind of stuff ta goes in homes that i like but they also a commercial water heating business. lately that's been slowing down so let me do some more work and i'll have to come back to you. some of these moves are just astonishing. for however long they last before the market moves on to the next mauling. on mad money tonight, turning classic into cash, can they continue to keep your profits fresh? i have the exclusive. then, is your your chance to buy a ferrari? no, not the car, the stock. i'm taking the company for a
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test drive after a full day of trading. plus, chipotle lost its spice, but is it temporary rare? don't miss my take, believe me. stick with cramer. don't miss a second of "mad money." follow @jimcramer on twitter. send jim an e-mail to madmoney@
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call at 1-81-800-743-cnbc. tupperware roared today after spending the last couple of years in the dog house. i think this company may have gotten its groove back. how did they lose their mojo in the first place? they have tons of emerging market exposure which means it's gotten taken to the cleaners by, yes, the super freaky strong dollar. but it seems the company in the analysts finally adjusted to the foreign exchange issue. how do i know that? because when tupperware delivered this morning within it delivered an 8 cent earnings beat with higher than expected revenues that increase by 7% on a local currency basis.
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the company's european business is coming back. their asian pacific business is doing terrifically, including china. up 18%. overall, tupperware's emerging business increased by 20% and the north american business is on fire. it's incredibly shareholder friendly and a juicy dividend. don't take it from me, though. earlier, i got to check in with can chairman ceo of tupperware to hear more about the quarter and its company's prospects. take a look. >> give us the anatomy of a blowout. this really was new product, china, just kind of the moment in time. how did it happen? >> well, i've got to say first, we have an attitude, every business works until it doesn't. our guys just keep leaning into it and things came together this quarter. it was nice to see.
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>> this china order, if i listen to tupperware, what i'm saying is maybe they're not selling the right stuff. >> well, that has part of it to do. if you're selling high priced -- if you're selling cars in china, might be some pressure. but lower net know, and you know what a lot of people don't get? ten years ago, china was a $2 trillion market. it's a $10 trillion market. it's five times the stiez. >> one of the things we've learned is people like flexible hours. judging by the number you're signing up in north america, that's more true than ever. >> absolutely. interesting, we have this phenomenon happening with millennials. they are going to be 50% of the workforce by 2020, 75% by 2025, 58% of them want to be entrepreneurs and the bulk of them don't want to work 9:00 to 5:00. they'll bust their butt at 3:00 a.m. in the morning, but the traditional workplace is not their cup of tea. >> so you're telling me the
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average age of your reps has come down. >> significantly. >> tell me about that. i didn't realize that. >> well, somebody told me a long time ago, if you want to catch moves, you've got to use moose bait. we started doing research, what are millennials looking for? they want purpose in their life. when tailor swift came out and took on apple, she didn't have to do that. she did it for everybody else out there. we're attracting a lot of those people. and our whole concept of the enlightenment and empowerment of women, a lot of people, that's sticky to them. >> one of the things we don't talk nearly enough about is the fact that you're a technology buff. many of these sales are innovations you come up with every single year. >> interesting. if you look back when i joined the company, we were 85% food storage. now we don't call it food storage.
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food preservation and it's about 25%. our new product is what we focus most of our time on. we are the number one seller of cookbooks in france, we're a cutlery company. we do innovation for food prep for busy, working women. so technology is really what it's all about. >> a bit of strange numbers, a lot of this many them obviously because of currency. i expected a lot of europe to be stronger because buff such a strong presence in san francisco. anything to worry about? >> europe has something to worry about because i'm part of this thing for european lead is. europe is getting older, they're not producing enough jobs. when steve jobs launched the phone here, he had a market of 300 million he could sell to. over there, look at what happened to nokia, they had to get registration in 40 different
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countries. women want to be entrepreneurs. they have millennials, too. >> you've been terrific at putting new products in your pipeline. at a certain point, don't he just want that product line to put it right through yourself? >> no. >> that is not a maybe. >> that was a no. >> that's a no. >> hey, we have wonderful beauty businesses in certain markets. >> and you don't need that. all right. you always give straight answers. every bit deserving. stay with kraker. coming up, what's cooking? shares of spi polt lay mexican grill have loss a pinch of advisel after its disappointing third quarter results. has the flame on this company been turned way down?down? well, things in the bedroom have always been pretty good. yeah, no complaints. we've always had a lot of fun, but i wanted to try something new.
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>> today we saw one of the year's most heavily anticipated
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the highest of the high-end luxury sports carmakers which now trades under the fabulous symbol r-a-c-e. it's not a surprise that fer rey regardry's stock closed up 5% today. however, before you buy this stock simply because you're in love with the can you know company's beautiful cars, i think it's worth taking a look under the hood in order to figure out what you're really getting when you buy shares of ferrari other than the hoopla that we saw today at the exchange. we know that ferrari has a decent sized race car business. in addition to selling cars that are street legal. we know the company sells engines along with ferrari bradz branded swag. but perhaps the most important part of this deal, in my view, is not so much what you might be buying with this ferrari ipo. no. it's who's doing the selling. >> sell, sell, sell. >> in this case, ferrari belongs to fiat chrysler.
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and they now have an 80% stake with that missing 10% having been sold publicly. theo has been in charge here since 1969 and this is the first step in the spin-off that will result in a separation of ferrari from fiat/chrysler. they're spinning off ferrari for two reasons. in part, because its performance has been lagging. the company sells a less exciting brand, like jeep, but mainly because they believe ferrari can get a higher valuation as an independent company and it makes sense to me. when ferrari builds a car, it's still about performance. what about the performance of the actual company? when you look at the numbers, you might be surprised. ferrari generated 18% revenue growth in 2014, but their sales were flat year over yeefr first quarter 2015. but let's sink deeper than that. let's look at sales and earning he don't tell the story.
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its total shipments increase by 16%. it's declining by 5.5% the year before and the first quarter 2015 they shipped only 1,635 cars. down 5.6% from the year before. of course, these volume numbers might not mean what you think they mean because ferrari is not like other automakers. the company says demand outstrip outstrips supply for ferrari and they plan to keep it that way by limiting the supply of new cars they make. let me read you the part of the per expectus that i think will help you. we believe that waiting lists have promoted our productive sense of exclusivity. we ensure we do not jeopardize client satisfaction, end quote. that's right. ferrari tries to not meet the demand for their vehicles. and you know what? the strategy makes a lot of sense. it's why this company can get away from selling the cars anywhere from $188,000 to $40,000.
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items and the luxury items are always defined by their scarety. that is fabulous for pricing. but on the other hand, it's difficult to grow as a business if you're not willing to sell more cars. before 2013, ferrari's business was determined by their manufacturing capacity. but in 2012, management decided deliberately to limit the number of cars sold to roughly 7 nous a year. in order to maintain that sense of exclusivity they talked about in the process. going forward, ferrari plans to continue to keep volume relatively low. it was mentioned to me this morning when i was interviewing sergio marcionni. i said, hey, can you double the number of cars? that's not what it's about. nevertheless, they do intend to do their shipments from 7,255 last year to 9,000 by 2019. i want them to double production. forget about it. so essentially, ferrari has
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that's right, you heard me. 4.5%. we typically don't regard that as growth, do we? maybe the companies push prices higher and perhaps sxabd their auxiliary businesses, maybe in the rate of 5% to 10% range. given how this stock is valued, more on that later. i like to see how much faster growth you could have here to justify the prices people are paying for the stock. of course, we don't even know if ferrari will be able to successfully execute when it comes to increasing the production of new cars. even if they do, we have to be concerned this will hurt the company's pricing power. now, believe it or not, sales of cars and spare parts are only temporarily 70% of ferrari's total revenue. the rest comes from engines and various commercial sponsorships. of these business, only the engine segments growing rapidly, making a real growth driver for the company. engines only account for about 11.3% of the total sales. put it altogether, and you have
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that is gorgeous, but not particularly sexy numbers. which brings me to the main reason why i'm not willing to give ferrari stock my endorsement. it's the valuation. in its current stock, it has capitalization a little over $10 billion. given the company's anemic growth race, i think that's a expensive price to earnings multiple to pay here. using 2014 numbers, general motors sells for 11 times earning webs ford sells for 13 times earnings, chrysler, best of breed, 18 times earnings. ferrari's valuation leaves them all in the dust. while ferrari has better products, it doesn't necessarily have better premiumes. truth be told, i'd rather own shares in fiat/chrysler. but how does it stack up against luxury goodness segment?
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>> coach, 13 time earn eggs. testify tiffany, 19 times earnings. none of them comes near the valuation ferrari is getting. with its current $10.5 billion market cap, ferrari is being valued at roughly $1.4 million per car. $1.4 million per car? you have to look at it over multiple years. ferrari remains cheaper than tesla, but to be fair, tesla has a rapidly growing business, which makes it easier to argue the stock deserves a premium multiple. people love the products and don't really care all that much about the fundamentals. they want a share of race. no matter how you look at it, ferrari is incredibly expensive. the ipo is only 10% of the share cap in the hands of the public. they plan to spin off remaining shares to you in early 2016. in other words, in a few months, a huge slice of additional stock
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i bet ferrari's share price gets slammed. i suggest you wait until fiat -- chrysler unloads the rest of their stake. here is the bottom line. no matter how much i like ferrari's products, and i do, i simply cannot get behind the stock at this elevated valuation. it's trading at exorbitant levels. i'm not saying the stock can't go higher in the near future, but what i am saying is that ferrari, the car, but certainly the stock, way too risky for this guy. john in new york, john. >> caller: hi, jim. thanks for taking the call. >> not a problem. >> i wanted to ask you about your thoughts on the long-term outlook for first data corporation. >> you know what? long-term, i think they're going to do okay. it came out pretty expensive. it was priced a little bit too high. they got away with it and i think the stock can trip. ultimately, i'm going to warm up to it at a certain point. you've got people in that
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companies. ferrari was off to the races today. that's not necessarily a good thing. this stock is just too expensive. i can't get behind it. much more "mad money" after s.a.p.'s phenomenal earnings idea, the takeover that's helping to take it to new highs. then i'm chewing over chipotle to see if the stock represents a buying opportunity or a busted growth stock. and your calls rapid fire in tonight's edition of the lightning round. stick with cramer.ramer. 130 yards now... bill's got a very tough lie here...
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when sap, the gigantic german enterprise for a company preannounced last week, it took a lot of people by surprise. yesterday, she suggested it would outrun the guidance. this is all about sap's transformation doing a major and fast grower in the cloud. clouds revenues rocketed 176% higher. what's driving that? i think a lot has to do with
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current technologies. the leading purveyor of software, they awiefd s&p last year. this made sap the second largest player in the cloud revenue. when sap bought concur, they did something smart, they decided to keep around the management team. this helps businesses to save a fortune on their travel costs, makes it easier for executives to see what employees are charging with their expense account. sap is now one of the fewer older tech companies that has figured it out. in order to get a better sense of what's happening in the world of cloud computing and corporate travel, let's take a closer look with steve singh. welcome back to mad money. >> nice to see you again, jim. >> congratulations. i never got to congratulate you in person. what a fantastic thing you did for shareholders and for yourself because you're sticking around.
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and it's been an amazing year. the trust that dillon put in concur and in me, this has been fabulous. it's been an incredible year, not only from the growth of our business, but also the fun that our people are having, building on a much bigger platform than we were able to do on our own. so speak to what it means. the company that sap is working with, a company they slotted in concur or suddenly you introduced sap? >> this is one of the biggest global technology companies in the world. they have more than 250,000 customers. and the beauty of the last four quarter, wooerve a part of sap for four quarters. the beauty of the last four quarters is we've seen that global scale really helps. and we were growing at fast rates even before becoming part of sap. but what's been really amazing is every single quarter since then, we've grown at faster, accelerateing growth rate every quarter. >> which i'm always afraid won't happen when the follow-up.
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then it just disappeared disappears. acquisitions are hard to do. fundamentally, the success of acquisitions is driven by the focus of the management team doing the acquisition. in this case, you think about what bill and hassle have been driving from the acquisition strategy. they've been laser focused and given a chance to flourish. they had an amazing last four quarters. by the way, has the ceo, a former ceo, becoming ceo of concur, it's wonderful to see the success of concur. but as a shareholder, i look at this and say, look, it's great to see the growth we're seeing in all of it, whether it's field glass or success factors or hybrids. last quarter, the quarter we just finished, more than 100% growth in revenue for all of our business. even when you back out, the positive impact of concur, we're still growing at best in class revenue growth rates and best in class bookings growth rates. >> let's talk about what it brings.
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constantly have and it's all in your handheld. describe what the product does. >> one of the things that i'm really excited about is we can continue to execute on this vision that we had of creating the perfect trip, right? the idea that i can speak to my phone and say, look, book me a flight from seattle to philadelphia and not only will i book that flight automatically for you as the provider of that software, but i'll say, okay, i know what hotels you like, i'll book it all automatically for you. as you take that trip, we'll fill out your expense report for you automatically. that's the beauty of concur. and now we get to do it at a global stays of ten exercise in what we had before. that's the mission. >> and while you're at it, you don't actually need the expense of the travel department. >> no. >> and i imagine the amount of fraudulent t&e is coming down. >> massively. you know your parent company is a customer of ours and we've seen great savings.
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the moment we can push this so where it can be done automatically for you, the less you need in services. it gets done for you automatically. >> can you run it through the way it was versus the way it is now, right from the booking all the way to where you stay and eat. >> go back 10, 15 years ago, right? you would pick up the phone and call your travel desk and somebody would, you know, basically book your air fare, your hotel and everything else. today that's done in two or three clicks. but the real pain part of travel was when you came back, you had to fill out typically on a piece of paper or a spreadsheet all these cells that says this is how much i spent by day, by category. today, that's being done. 80% of the expense report is pulled out for you automatically. >> i know. i love that. >> this is the beauty of concur and the promise of what we can do under sap. >> there's an element that concur leads on the sharing economy and the on demand economy. >> yeah. for example, you know what? we just signed a great deal with lift. we signed a great deal with hotel tonight.
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recently signed was all these amazing companies that help you book travel integrated into the computer platform. >> the last question i saw merck had a disappointing number tonight. any reason why you think they didn't buy it? >> you know, i can't comment on that. but, jim, here is the thing that i do love. sap is in this amazing position where it has an amazing growth business which i think investors understand and expect. but the part that's beautiful about sap is we're seeing our core business grow, right? hannah delivers a positive view of your growth rates where our bigger specificitiers as you saw declined. i think this is the part of the story -- >> you are absolutely right. i was skinned by how good the number is. steve singh, what a fantastic job. "mad money" is back after the break.break.s and go. but these liquid gels are new.
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it is time. and it's time for the lightning round. >> buy, buy, buy. [ indiscernible ]. >> and then the lightning round is over. are you ready, skedaddy? robert in new york. robert. >> caller: a big booyah to you, jim. my name is robert fishman. i have a question regarding stan stars and lions gates films. >> lions gate films has had too big a run for me. i think you have to wait. i feel the same way, by the way. disney pulled so much up, i would want to wait until disney comes back to 108 or 109.
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>> caller: big booyah, jim, from west hollywood, california. my question today is about crc, the company spun off from oxidental. >> no, no. >> sell, sell, sell. >> they did a smart thing at oxy by getting rid of this one. let's go to david in georgia. david. >> caller: hey, jim, thanks for everything you do for us home gamers. >> you're quite welcome. >> is there any way i could be considering chesapeake -- >> no. charles in texas, charles. go ahead, charles. >> caller: hey, jim, i was wondering, should i buy sprint or should i -- >> you know, i don't care for sprint here because i like well capitalized companies like verizon or at&t or t-mobile. no reason to put my name in sprint. how about rock in alabama? >> caller: booyah from rock coming from l.a., lower alabama,
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that is. and i was wondering about the slide on western digital and sandisk if it was just a coincidental if micron slid with -- >> no. micron went down because intel announced they're going to move into flash. this is a stock that has tried the bottom and is not going to be able to succeed, i don't think. paul in california, paul. >> caller: jim, bu ya to you. >> booyah. i've been hanging with you since the first housing bubble, the leverage and the arbitrage and the government printing press created a dozen more bubbles including biotech. i love -- but because of the great earning eggs report ingings report, i went into alab pharmaceuticals. they do a lot for women. they do a lot of -- >> but as long as you know it's speculative. it's not the kind of stock you
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want to own. julian in texas, julian. >> caller: hi, jim, how are you? >> i'm all right. how about you? >> caller: good. i wanted to get your thoughts on tyson foods? >> i blew it with tyson foods. my charitable trust owned it. i decided to sell it and the stock lost a lot of money. it is doing quite well. mike in virginia, mike. >> caller: jim, booyah to you. >> booyah. >> caller: mike in virginia. my stock is kansas city -- >> everyone keeps trying to call bottom on this one, mike. i don't do that. the only railroad that i do like is union pacific and i think one. and that, ladies and gentlemen, is the conclusion of the lightning rounds! >> the lightning round is sponsored by td ameritrade. >> mr. cramer, absolutely love the show. >> we really appreciate you out there, man. >> booyah, my kids are in elementary school and learning so much from you. >> booyah, mr. cramer. >> i know you hear this all the time, jim.
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but thank you, thank you, thank you so much. >> this has been my best year by far and away in the market. >> i just want to thank you for looking out for the regular guys out there. >> i am trying to teach people to be better investors and i am doing my darned best. that's the goal here. >> great to hear your voice and know that you're there for us. it's time to dance freely thanks to new pampers cruisers the first and only diaper that helps distribute wetness evenly into three extra absorb channels. so it stays drier and doesn't sag like other diapers so wiggle it jiggle it and do, whatever that is, in new pampers cruisers love, sleep and play. pampers it's the final countdown!
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jim cramer, you're one of my heros. >> i look forward to your show every week night. >> thank you so much for helping beginning investors like me. >> when you talk about the markets, i just believe that you're spot on. >> oh, i love it. thank you so much, every night we watch you.
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>> the last thing you want to hear on a day like today was a stock that chipotle fell almost 40 bucks is that you should buy some shares in the restaurant chain. you'd rather by the burrito. especially when many analysts believe in the return of the popular items in the menu. after this partial withdraw -- they're accelerating same-store sales growth. not the two plus number we got today. oh, two plus, that's something. nor did anyone want to hear the negatives chipotle talked about which is things got weaker as the quarter progressed. second, october has started off choppy. third, wage costs and real estate costs are going to be a mess. it's been years, they said on the call and the company has to be proactive in raising wages and offering more perks in order
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to retain the best employees. it's only going to get worse before it gets better, right? it's not capturing enough of the out of store eating markets. as two-thirds of the food is eaten outside the store, only a measly 7% is ordered outside the store. as steve ells said, the company hasn't quite optimized their mobile order experience why he yet, but it's an understatement. fifth, the new are still very much inertia. six, chipotle said its european business is just getting started. i don't think it's going to be roldz out all that quickly, frankly. seven, in the current quarter, at least it's -- eighth, chipotle admits that the co-ceo said, and i quote, i think we took our eye off the ball a little bit. end quote. and that, quote, it happens sometimes, end quote. that includes losing one key
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a -- that's a pretty dramatic through decline and throughput after many quarters of gains. try to get them through, get them through. this time they didn't. there's no major ad campaign out there to restart things. finally, chipotle has plenty of cash. just 46,000 shares bought an average of 670. despite a $155 million purchase price. hence why the stocks are huge. but now let me go against the grain for a moment here and explain why this one might still be worth it. first, this is chipotle, for heaven sakes. it's one of the greatest restaurants of all time. stock was at $55 nine years ago. so it's tough to give up on these guys now. in the last three years, there have been three gigantic stocks. a 40% drop in 2012. 20% drop in 2014. 44% drop this year. in each case, you had to buy
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maybe not buy it immediately. it seems the company has done the same thing with the stock. it wouldn't surprise me if that money gets into the level. that's because these are indeed transients. all three major initiatives, they're going to be in much faster growth mode in the next year. chipotle's management is not going to take their eye off the ball a secretary time. that's fought like them. while labor costs are going up, i expect food costs to start coming down. ultimately good for the price of beef and the new round of price increases that they're going to put through, most important of all, chipotle is moving quickly with new personnel and a xhimtd commitment for spending to fix it. in other words, i think when you look back, you'll find you're getting a chance to buy the stock from the best company in
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the industry at a new trough. simply wait a few weeks for the dust to settle. the pattern is not going to be able to buy it tomorrow. remember the best of breed in management teams, they never rest. in the end, i'm talking about a leap of faith in this team, but one that has been repeatedly justified. i think it will be justified again. chipotle remains a favorite destination of the younger people in this country. they although last inherit if
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store sales of the nation.ion. hey buddy, let's get these dayquil liquid gels and go. but these liquid gels are new. mucinex fast max. it's the same difference. these are multi-symptom. well so are these. this one is max strength and fights mucus. that one doesn't. uh...think fast! you dropped something. oh...i'll put it back on the shelf... new from mucinex fast max. the only cold and flu liquid gel that's max-strength and fights mucus. start the relief. ditch the misery. let's end this. americans. we try to live healthy. but many of us don't know there are nutrients that can help support our metabolism. take new one a day healthy metabolism support multivitamin with chromium to help use carbs from food and b-vitamins to helpconvert food to fuel. one a day. happy anniversary dinner, darlin' can this much love be cleaned by a little bit of dawn ultra? oh yeah.
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of two bottles of this bargain brand.
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keep talking about these roving fair markets within the context of the entire market. right now, the one that's in health care is so vicious that it is truly frightening many money managers who are never used to seeing a stock like a valiant. almost get cut in half in a single session because of a report that came out that said that it could be lighten ron. that is driving portfolio managers away from the health care group which had been a huge leader. without a leader like a health care group, the industrial stocks cannot do it alone. those are really the only groups right now that are unscathed a little bit. we need some calm before we can advantage. i like to say there's always a bull market somewhere. i promise try to find it just
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